About CAAZX
American Funds College 2042 Fund 529-F-2 is a target-date mutual fund designed to help investors save specifically for future college expenses, typically aligning its target date with the expected college enrollment year of the beneficiary. The fund seeks a blend of growth, income, and capital preservation by dynamically allocating its assets across a diversified mix of underlying American Funds, which include growth-and-income, equity-income, balanced, and fixed-income strategies. As of March 2025, the portfolio is primarily composed of U.S. equities (about 62%), with significant holdings in non-U.S. equities (28%), and smaller allocations to U.S. and international bonds, alongside cash equivalents.
The asset mix and risk profile are automatically adjusted over time—starting with a more growth-oriented allocation and gradually shifting towards income and capital preservation as the target date approaches, accommodating the changing risk tolerance as college enrollment nears. This structure provides investors with a hands-off, diversified approach tailored to education funding, reflecting the fund’s role in the 529 College Savings Plan market. With a moderate expense ratio and a low minimum initial investment, it aims to make saving for higher education more accessible for a broad range of families.
Fund Family Capital Group
Category Mixed-Asset Target 2045
Stock Exchange Nasdaq
Ticker Symbol CAAZX
Share Class Class 529-f-2
Index Index is not provided by Management Company
CAAZX had a total return of 12.41% in the past year, including dividends. Since the fund's
inception, the average annual return has been 15.81%.
